Beyond Egan's supply chain management: advancing the role of logistics in the South African construction industry : review article

The construction industry has globally been identified by investors and portfolio managers as under-performing in terms of return on investment (ROI), while simultaneously exposing the capital investment of investors to the highest levels of risk compared to any significant industry. In some cases, construction firms have received rates of return of as low as 1.5 to 2%. This is typically an unsustainable level of return for investors as they can gain a considerably higher ROI through much less risky financial vehicles such as gilts and bonds. Given such a low rate of return, the construction industry has for a number of years attempted to increase efficiency and reduce costs as a means of winning further business and increasing profitability. One of the methods that have been espoused as offering significant potential benefits for construction has been the industry-wide adoption of the principles of supply chain management (SCM). However, at present the bulk of SCM practice is focussed on high level strategic issues, whilst largely ignoring more operational issues related to logistics. This is a major omission, given the fact that a recent study by the Building Research Establishment (BRE) in the UK indicates that as much as 30% of the cost of construction is attributed to transportation of materials. This article examines, through a review of literature, the role of SCM in construction and the contribution an effective logistics system can make to increasing efficiency and reducing construction costs. Die bou-industrie word wereldwyd deur beleggers en portefeuljebestuurdersvereenselwig met die onderprestasie van opbrengs op belegging. Terselfdertydstel dit beleggers se kapitaalbelegging bloot aan die hoogste risikovlakke invergelyking met die van enige betekenisvolle ander nywerheid. In sommigegevalle verdien konstruksiefirmas opbrengste van slegs 1.5% tot 2%. Vir beleggersis dit 'n onvolhoubare vlak omdat hulle 'n veel hoer opbrengs deur veel laer risikomiddele soos verbande en borgaktes kan verdien. As gevolg van hierdie laeopbrengs het die bou-industrie gepoog om doeltreffendheid te verbeter enkostes te beperk om sodoende verdere besigheid te genereer en winsgewendheidte verhoog. Een van die metodes wat uitstaan as 'n metode om betekenisvolle voordele virkonstruksie te bied is die industrie-wye aanvaarding van die beginsels vanleweringskettingbestuur. Maar, tans is die omvang van leweringskettingpraktykafgespits op hoevlak strategiese kwessies terwyl die meer operasionele kwessiesvan logistiek ignoreer word. As in ag geneem word dat 'n resente studie deur dieBuilding Research Establishment (BRE) in die verenigde koninkryk aandui datsoveel as 30% van konstruksiekoste aan vervoer toegeskryf kan word, is hierdie 'ngroot weglating. Hierdie artikel ondersoek die rol van leweringskettingbestuur inkonstruksie en die bydrae wat 'n effektiewe logistieke stelsel kan maak omdoeltreffendheid te verbeter en kostes te sny.

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